Stock Market Today: Nifty Below 26,200, Sensex Down 0.43%; ICICI Bank Jumps 2.32%

Overview:

• Sensex fell 390 points as profit booking hit heavyweight stocks.
  

• Reliance and Trent declines offset gains in banks and metals.
  

• Markets remain cautious ahead of earnings and geopolitical developments.

Indian stock market today showed bearish sentiments, with benchmark indices pulling back from record highs. Sensex traded at 85,070 points, down 390 points or 0.43%. Meanwhile, Nifty slipped below the 26,200 mark, losing 68 points or 0.28% to trade at 26,175 at press time. The dip came amid rising geopolitical concerns and profit booking by investors. Here’s how individual stocks performed based on Moneycontrol Live Updates. 

Share Market News Shaping Market Sentiments

Reliance Industries emerged as the biggest drag on the stock market today, with shares plunging 3.32% to trade at Rs. 1,525. This marked the steepest single-day decline for the oil-to-telecom giant in five months. The company's stock touched an intraday low of Rs. 1,518, significantly pulling away from its 52-week high of Rs. 1,611 hit just a day earlier. With a market value exceeding Rs. 20 lakh crore, Reliance's downturn created substantial negative pressure across the broader market.

Trent, the retail arm of the Tata Group, saw sharp selling pressure despite reporting strong quarterly numbers. The stock tumbled 7.07% to trade at Rs. 4,116, even after announcing a robust 17% jump in standalone revenue to Rs. 5,220 crore for Q3. The company added 17 new Westside stores and 48 Zudio outlets during the quarter, bringing its total store count to 278 and 854 respectively.

Banking Sector Provides Support

The banking sector offered some relief to the Indian stock market, with the Bank Nifty recovering nearly 1% during intraday trade. ICICI Bank emerged as a top gainer, surging 2.32% to Rs. 1,403 - its biggest single-day gain in five months. The stock recovered sharply from the day's low of Rs. 1,367.

Axis Bank gained 0.56% after reporting strong Q3 business updates. The bank's gross advances jumped 14.1% year-on-year to Rs. 11.70 lakh crore. Meanwhile, total deposits grew 15% to Rs. 12.60 lakh crore. Similarly, Kotak Mahindra Bank reported encouraging numbers with total deposits rising 14.7% to Rs. 5.26 lakh crore.

However, HDFC Bank bucked the trend, hitting a three-month low on concerns about slower deposit growth. Brokerages flagged that the bank needs stronger deposit inflows to support loan growth in the future.

Also Read: Stock Market Today: Sensex at 85,826, Nifty 26,357 as Infosys Slumps 3.28%

Metal and IT Sectors Shine Bright

The stock market today saw strong performance from the metal sector, with the Nifty Metal index climbing 1%. Hindalco Industries led the charge, rising 3.31% to hit a fresh 52-week high of Rs. 962.80. Hindustan Copper jumped 3.42%, while Hindustan Zinc and Vedanta also gained in stock market today.

The IT sector provided additional support. BSE IT index was up 0.3%. Mindteck surged 6.86%, while Mphasis, Coforge, and TCS all traded higher. Tech Mahindra and HCL Tech also contributed to the sectoral gains.

Energy and FMCG Sectors Face Pressure

Energy stocks bore the brunt of selling, with BSE Energy index declining 1.6%. BPCL fell 2.74%, Hindustan Petroleum dropped 2.69%, and IOC shed 1.58%. The weakness came amid global oil price volatility and geopolitical tensions.

The FMCG sector also faced headwinds. Dabur India plunged 3.18% despite announcing that its consolidated revenue would grow in mid-single digits for Q3, with operating profit expected to grow ahead of revenue. The company's home and personal care business is projected to post double-digit growth.

Broader Market Performance

The broader market showed mixed trends. BSE Midcap index traded lower, while the Smallcap index also faced selling pressure. About 1,475 shares advanced against 2,104 declining stocks on the NSE at press time.

PSU Bank stocks offered support, with Nifty PSU Bank index rising for the seventh straight session. Union Bank led gains with a 2.61% jump, followed by Bank of India and State Bank of India.

Also Read: US Stock Market Today: S&P 500 and NASDAQ Climb While Oil and Gold Gain on Venezuela Developments

Market Outlook

Analysts suggest the market may remain range-bound in the near term. Investors are keeping a close eye on geopolitical developments and corporate earnings. The support level for Nifty is seen around 26,100-26,130, while resistance lies at 26,370-26,400. Experts suggest a cautious approach while keeping an eye on upcoming Q3 results.

FAQs

1. What were the factors driving the drop in the Indian equity market today?

The equity market has fallen today (1 Dec 2009) for two main reasons: profit-taking following the Nifty's rise into the 6700 range, combined with geopolitical risk-reduction factors.

2. Which stocks had the greatest effect on the overall equity market today?

Reliance Industries had the most significant impact, having lost more than 3% of its value. Similarly, Trent, which had announced very strong quarterly results, has also had a very sharp decline. On the other hand, ICICI Bank, as well as Hindalco (HINDALCO: BSE), have both positively contributed to the equity market performance today, which limited the extent to which the market has fallen.

3. What was the performance of the Bank Sector?

The banking sector was relatively strong and provided good support to the overall equity market. The Bank Nifty recovered from nearly a 1% decline, mainly due to gains in ICICI Bank (ICICI: BSE) and Axis Bank (AXIS: BSE). At the same time, HDFC Bank underperformed amid concerns about its deposit growth.

4. Which sectors showed strength during the Trading Day today?

​Metal stocks have had strong performances today; among the best performers was Hindalco Industries, which reached a new 52-week high. The Indian Information Technology Sector received some brief support, mainly through purchases of Mindteck (MIND: BSE), Tata Consultancy Services (TCS: BSE), and Coforge (COFORGE: BSE) stocks.

5. What is the near-term outlook for the market?
In the near term, analysts believe the market will continue to trade in a specified range, determined by investment trends. Investors are paying particular attention to ongoing geopolitical tensions and Q3 earnings releases. The market will have Nifty support located near 26,100 and resistance situated at approximately 26,400.